5 Oct

House price increase 'correlates with financial climate'

House price increase 'correlates with financial climate'

Rising house prices are consistent with recent improvements in the UK economy as a whole, one property expert has suggested.

Martin Gahbauer, chief economist at Nationwide, said that economic and financial indications over the past few months suggest that it is probable that the worst of the recession and financial crisis has passed.

His comments follow the publication of statistics from the firm, which revealed that house prices increased across the UK during the third quarter of 2009, although southern regions saw greater growth than their northern counterparts.

Mr Gahbauer pointed out that given the high unemployment rate, limited credit conditions and the imminent withdrawal of the stamp duty holiday, "it would be surprising to see house prices continuing to increase at the very strong rate seen in recent months".

He added that people should maintain caution about the outlook for house prices, as turnover in the market is still below normal levels.

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